Baron and Budd Reaches Settlement with GameStop Regarding
Downloadable Content (DLC) and Used Video Games

Settlement Could Lower Prices of Certain Used Video Games

April 10, 2012 01:29 PM Eastern Daylight Time

SAN FRANCISCO--(BUSINESS WIRE)--Yesterday, in the United States District Court for the Northern
District of California, Senior District Judge Thelton E. Henderson
entered an order preliminarily approving a class action settlement Baron
and Budd reached with GameStop Corporation, the world’s
largest video game retailer. The settlement concerns used video games
sold by GameStop to consumers who are unable to access certain
downloadable content and online features (DLC) unless they pay an
additional $15, even though the packaging of the video games claims that
the DLC is available for free with the purchase of the game.

Under the settlement, GameStop must, for the next two years, post
signs on the shelves where used games are sold in California stores, and
online, warning consumers that certain downloadable content may require
an additional purchase.

Additionally, as part of the settlement, consumers will have the
opportunity to recover the additional $15 they would have been required
to pay to access the downloadable content. Consumers who purchased
qualifying used games and who are enrolled in GameStop’s “PowerUp
Rewards” customer loyalty program can receive a $10 check and a $5
coupon. Consumers who purchased a qualifying game, but are not members
of GameStop’s loyalty program, can receive a $5 check and a $10 coupon.

“We are pleased that as a result of this lawsuit, we were able to
obtain complete restitution for consumers, with actual money paid out to
people who were harmed by GameStop’s conduct,” said Mark
Pifko, Baron and Budd attorney and counsel in the
lawsuit. “The in-store and online warnings are an important benefit
under the settlement as well, because if GameStop discloses the truth to
consumers, it is unlikely that they will be able to continue selling
used copies of certain games for only $5 less than the price of a new
copy.In fact, we already know that not long after the
lawsuit was filed, GameStop lowered prices for used copies of many of
the game titles identified in the lawsuit.”

According to the lawsuit, GameStop purchases used video games from
consumers for only a fraction of the original price, and then sells them
to other consumers at a marked-up price, usually around $5 less than the
price of a new game, to maximize their profits. Utilizing this practice,
GameStop makes more than $2 billion a year on used video game sales,
without paying any royalties to video game publishers or developers, the
lawsuit alleged.

If you believe you have been affected by GameStop’s policies,
visit http://www.facebook.com/gamestop.settlement
to learn more about this settlement, find out how to recover lost funds
from GameStop, or to keep up with the latest about the settlement.

Although this settlement only applies to California consumers,
Baron and Budd is investigating similar GameStop practices in other
states. If you live outside of California and have experienced the same
issue at your local GameStop, contact Baron and Budd at 1.866.844.4556
or via email at info@baronbudd.com
for a free legal consultation.

About Baron & Budd, P.C.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton
Rouge, Austin, Los Angeles and Miami, is a nationally recognized law
firm with a 30-year history of "Protecting What's Right" for people,
communities and businesses harmed by negligence. Baron & Budd's size and
resources enable the firm to take on large and complex cases. The firm
represents individuals, governmental and business entities in areas as
diverse as water contamination, Gulf oil spill, Qui Tam, California
Proposition 65 violations, dangerous medications and medical devices,
Chinese drywall, insurance claims, commercial litigation, consumer
fraud, securities fraud and asbestos-related illnesses such as
mesothelioma. Learn more about the mesothelioma
attorneys at Baron & Budd.